Microsoft Corporation (MSFT) Ditches Legalese in its EULAs

Microsoft Corporation (NASDAQ:MSFT) has apparently softened its legal documentation known as “fine print” or – in official terms – the End User License Agreement (EULA), for its Windows 8 operating system. For those who don’t usually read such a thing, Microsoft has apprently taken the steps to make scu a document, if not more entertaining to read, more understandable to regular consumers without having to hrie a lawyer to translate.

A couple of Web sites that follow technology happenings have commented on this idea of having legal documents by Microsoft Corporation (NASDAQ:MSFT) actually be readable. (No indication from anyone whether this “fine print” will be larger than six point or not, but we have to start somewhere.)  And from all indications, this different EULA isn’t just a subtle use of different synonyms that are a couple letters shorter – this is a full-blown update to the EULA that has easily comprehended concepts.

Microsoft Corporation (NASDAQ:MSFT) is likely not thinking that an easy-to-read EULA will be what puts its Windows 8 OS over the top with consumers to make it the biggest thing since the PC, but certainly it seems the company has received feedback from customers and other end-users to perhaps clarify the EULA to reduce confusion. A couple of sites – this one and this one, primarily – sample the same parts of the EULA that was already out (these might be drafts), which are written in similar ways though there are three different types of end-users. All of the EULAs have two parts – the first is laid out in a general question-and-answer format  and deal with some of the more frequent questions of users, and the second section does into further details about terms and definitions.

While EULAs are dry and the least-read part of any software package, it is noteworthy that Microsoft Corporation (NASDAQ:MSFT) decided to simplify the agreements so the licenses would be more understandable – and probably would reduce legal fees to all involved if the dense legalese stayed in place and caused more confusion.

One should always wonder about possible financial ramifications for these types of changes. Will this type of change be dramatic enough on the bottom line to help investors, like the large number of hedge funds that invest in Microsoft Corporation (NASDAQ:MSFT) stock? It’s probably not likely that this would affect investors like Seth Klarman of Baupost Group – but it might be good customer relations for Microsoft.